2017 annual results...-19.7% -18.5% 15.4% 2015 2016 2017 gdp of china total value of import and...

CORPORATE PRESENTATION

2017 ANNUAL RESULTS

(Stock Code：0598.HK)

MARCH, 2018

1

This presentation and subsequent discussions may contain forward-looking

statements that involve risks and uncertainties. These statements are generally

indicated by the use of forward-looking terminology such as believe, expect,

anticipate, estimate, plan, project, target, may, will or may be expressed to be results

of actions that may or are expected to occur in the future. You should not place

undue reliance on these forward-looking statements, which reflect our belief only as

of the date of this presentation. These forward-looking statements are based on our

own information and on information from other sources we believe to be reliable.

Our actual results may be materially less favorable than those expressed or implied

by these forward-looking statements which could depress the market price of our

shares.

Forward-LookingStatement Disclaimer

2

Contents

01

06

05

02

04

03

Business and Resources

2017 Financial Performances

2017 Segment Review

Strategic Reorganization and Resources Consolidation

2017 Macro Economy and Company Highlights

Strategy and Prospects

3

2017 Macro Economy and Company Highlights

4

210 218237

4.2% 3.9%

8.3%

2015 2016 2017

872

711

820

-19.7% -18.5%

15.4%

2015 2016 2017

Total Value of Import and ExportGDP of China

China Containerized Freight Index (CCFI)Container Throughput Growth of China

3.953.68

4.10

-8.0% -6.8%

11.4%

2015 2016 2017

68.9174.41

82.71

6.9%

6.7%

6.9%

2015 2016 2017

YOY growth

Million TEUs

YOY growth

Trillion RMB

YOY growth

Point

YOY growth

Trillion USD

Macro Economy

5

Acquisition of China Merchant Logistics

Innovation of logistics related technologies

Participated in E-Commerce and the “Belt and Road” related activities

Provided logistics services to international and domestic fairs and exhibitions

Company Highlights

Strong alliance and strategic cooperation

6

Business and Resources

7

Other servicesShipping

Trucking

Express service

Storage and terminalservices

Warehouse and yard operation

Terminal operation

Logistics equipment leasing

Pallet leasing

Container leasing

LogisticsContract logistics

Project logistics

Chemical logistics

Cold-chain logistics

Freight ForwardingSea freight forwarding

Air freight forwarding

Shipping agency

Business Segments

8

Xinjiang

Tibet

InnerMongolia

Hainan

Taiwan

Shanxi

Qinghai

Gansu

Ningxia

Hubei

HunanJiangxi

Anhui

Henan

Hebei

Fujian

HongKong

Guangdong

Zhejiang

Jiangsu

Shandong

Liaoning

Jilin

Heilongjiang

Shanxi

Sichuan

Yunnan

Guizhou

Guangxi

Chongqing

Shanghai

Tianjin

Beijing

RegionLand Area(10,000m2)

Guangdong 185.47

Shandong 141.12

Jiangsu 120.94

Shanghai 117.60

Liaoning 86.52

Fujian 84.30

Tianjin 78.66

Sichuan 74.74

Zhejiang 65.26

Anhui 52.01

Guangxi 47.48

Jilin 34.26

Hubei 27.02

Guizhou 18.41

Beijing 17.60

Shanxi 16.43

Chongqing 15.33

Hunan 13.72

Heilongjiang 12.57

Yunnan 11.89

Henan 9.87

Jiangxi 8.62

Hebei 2.68

Hong Kong 2.40

Total land area :12+ million square meters

Domestic Land Resources

9

刚果 CONGO

安哥拉 ANGOLA

埃塞俄比亚 ETHIOPIA

日本 JAPAN

沙特阿拉伯SAUDI ARABIA

阿拉伯联合酋长国UAE

坦桑尼亚 TANZANIA

巴西BRAZIL

美国 USA

埃及 EGYPT

土耳其 TURKEY

德国 GERMANY

法国 FRANCE

巴基斯坦PAKISTAN

印度 INDIA

哈萨克斯坦KAZAKHSTAN 蒙古

MONGOLIA

韩国 SOUTH KOREA

缅甸 BURMA香港 HONG KONG

孟加拉国BANGLADESH

台湾 TAIWAN澳门MACAO

泰国 THAILAND

越南 VIETNAM柬埔寨 CAMBODIA

新加坡 SINGAPORE

文莱 BRUNEI

印度尼西亚INDONEISIA

马来西亚 MALAYSIA

吉布提 DJIBOUTI

澳大利亚AUSTRALIA

白俄罗斯 BELARUS

Overseas Branches:120+Countries & Regions:30+

Overseas Network: Branches

伊拉克 IRAQ

新西兰NEW ZEALAND

10

America/Europe

New York Los Angeles Chicago San Francisco Rio de Janeiro Frankfurt Paris

Middle East

Dubai DammamJeddah Istanbul Tehran Basra

Middle Asia

AlmatyUlaanbaatar

Arica

Cairo Luanda Pointe-Noire Dar es Salaam Djibouti Addis Ababa

Oceania

Perth

South Asia

Karachi SustDhaka Mumbai

Southeast Asia

BangkokKelangKuantanJohor BaruJakartaSurabayaSemarangSihanoukPhnom PenhRangoonBandar Seri BegawanHo Chi MinhHaiphongVientiane

East Asia

TokyoOsakaSeoulBusanHong KongMacao

Overseas Branches: 80+Countries & Regions:70+

Overseas Network: Agencies

11

2017 Financial Performances

12

(restated) (restated)

45,402.4 45,659.8 45,528.1

59,766.0

72,567.2

2013 2014 2015 2016 2017

1,212.8

1,434.4

1,961.9

2,800.0

2,981.4

2013 2014 2015 2016 2017

904.0

1,231.4

1,493.3

2,253.7 2,304.2

2013 2014 2015 2016 2017

Revenue

(RMB million)

(restated)

Profit for the Year

(RMB million)

Profit Attributable toOwners of the Company

(RMB million)

(restated)(restated) (restated)

Financial Highlights

13

(RMB million)2017 2016

(restated)Change

Cash and cash equivalents 9,709.4 9,324.0 4.1%

Current assets 30,072.1 27,176.8 10.7%

Total Assets 62,101.9 57,614.4 7.8%

Total equity 25,577.0 23,227.9 10.1%

Current liabilities 24,940.6 24,336.2 2.5%

Non-current liabilities 11,584.3 10,050.2 15.3%

Total liabilities 36,524.9 34,386.4 6.2%

Total Assets Less Current Liabilities 37,161.3 33,278.1 11.7%

Statements of Financial Position

14

2017 Segment Review

15

Revenue(RMB million)

2017 2016(restated)

Change

Freight Forwarding 45,718.7 37,548.7 21.8%

Logistics 18,669.2 15,705.6 18.9%

Storage and Terminal Services 2,276.3 1,948.9 16.8%

Logistics Equipment Leasing 1,456.1 1,288.7 13.0%

Other Services 4,446.9 3,274.1 35.8%

Segment Results(RMB million)

2017 2016(restated)

Change

Freight Forwarding 1,101.9 836.4 31.7%

Logistics 649.7 616.5 5.4%

Storage and Terminal Services 346.2 246.5 40.4%

Logistics Equipment Leasing 355.4 318.1 11.7%

Other Services 37.6 35.9 4.8%

RevenueContribution

in 2017

63.0%

25.7%

6.2%

3.1%2.0%

SegmentResults

Contributionin 2017

44.2%

26.1%

1.5%

13.9%

14.3%

Revenue and Segment Results

16


(restated)Change

External Revenue 45,718.7 37,548.7 21.8%

Segment Results 1,101.9 836.4 31.7%

Volume 2017 2016(restated)

Change

Sea Freight ForwardingContainers (in ten thousand TEUs) 1,168.2 1,025.8 13.9%

Air Freight ForwardingCargo (in million Kilograms) 533.3 492.5 8.3%

Shipping AgencyContainers (in ten thousand TEUs)

Bulk Cargo (in million tonnes)

2,436.5338.7

2,349.2285.4

3.7%18.7%

Freight Forwarding

17


(restated)Change


Segment Results 649.7 616.5 5.4%


Change

Logistics (in million tonnes) 48.5 43.2 12.3%

Logistics

18


(restated)Change




Change

Warehouse and Yard OperationContainers (in ten thousand TEUs)

Bulk Cargo (in million tonnes)

881.517.3

794.713.9

10.9%24.5%

Terminal ThroughputContainers (in ten thousand TEUs) 401.9 378.2 6.3%

Storage and Terminal Services

19


(restated)Change




Change

Pallet Leasing (in ten thousands/day) 2,293.2 2019.8 13.5%

Container Leasing (in ten thousand TEUs/day) 8.2 6.7 23.0%

Logistics Equipment Leasing

20

* Express ServicesJoint Ventures– Volume (in ten thousand units)– Investment Income (RMB million)

2,429895.2

2,315807.0

4.9%10.9%


(restated)Change




Change

TruckingContainers (in ten thousand TEUs)

LTL (in ten thousand tonnes)

88.847.1

80.445.9

10.4%2.6%

ShippingContainers (in ten thousand TEUs) 246.6 245.1 0.6%

Express ServicesDocuments and Packages (in ten thousand units) 6,134.4 772.9 693.7%

Other Services

21

Strategic Reorganization and Resources Consolidation

22

Profit of CML: RMB574 million

2017.8.22 Major and connected transaction

2017.9.6 Circular of shareholders’ general meetings

2017.9.25 Update on the major and connected transaction

Profit Undertaking:

2017.11.3 Completion of acquisition of a logistics company

2018.3.26 2018 annual results announcement

Financial year ending Guaranteed profit

31 December 2017 RMB560 million

31 December 2018 RMB580 million

Profit from CML

23

Pre-transaction structure

Post-transaction structure2

Other SinoairA shareholders

Sinotrans（598-HK)

Sinoair(600270-SH)

Sinotrans & CSC

（Delist & deregister）

100.00%

42.46%1 23.85%

39.05%

Issue A-share

Sinoair A-share

China Merchants

60.95%

Other H shareholders

Other Sinoair A shareholders

Sinotrans（A+H dual listed)

Assets and liabilities of Sinoair

Sinotrans & CSC

China Merchants

Other H shareholders

100.00%

100.00%

27.46%34.62%18.48% 19.44%

33.69%

Notes:1 This comprises of 2,461,596,200 domestic shares and 107,183,000 H shares held by Sinotrans & CSC

and its wholly-owners subsidiaries respectively represents the post-transaction structure prior to any price adjustment.

2 Based on the recommended dividends of Sinotrans and Sinoair, the pro-forma shareholding in Sinotrans will be 34.71% by Sinotrans & CSC, 27.53% by other H-shareholders, 19.49% by China Merchants, and 18.26% by other original A-shareholders of Sinoair.

Transaction brief overview

• The Company will issue A shares as Consideration Shares at the Initial Issue Price of RMB 5.32 per Consideration Share in exchange for Target Shares at the Initial Exchange Price of RMB 20.63 per Target Share held by Participating Shareholders of Sinoair at the Initial Exchange Ratio of 3.8778

• The Company will list the Consideration Shares on the Shanghai Stock Exchange and convert all existing domestic shares into A shares and list the same on the Shanghai Stock Exchange

Price adjustment mechanism

• The Initial Issue Price and the Initial Exchange Price will be adjusted for cash dividend, scrip dividend or bonus shares, share issues by capitalization of reserves and equity issues / other distributions by way of rights to shareholders made by the Company and / or Sinoair respectively

• Based on the final results announcement dated 26 March 2018, the board of Sinotransrecommends a final dividend of RMB 0.08 per share and the board of directors of Sinoair recommends a final dividend of RMB 0.60 per share for the financial year ended 31 December 2017

• Assuming approval from shareholders of the two companies of the respective dividend proposal will be obtained, the Adjusted Issue Price would be RMB 5.24 per share, Adjusted Exchange Price would be RMB 20.03 per share, Adjusted Cash Alternative would be RMB 16.68 per share, and Adjusted Exchange Ratio would be 3.8225

Sinoair Related Transaction

24

Trading Halt Period

• Announced that Sinoair is planning and dicsussing a major proposal, and has applied for the suspension of trading in its shares on the Shanghai Stock Exchange

2 Jan 2018• Announced that Sinotrans has

been involved in planning and discussions with Sinoair in relation to the major asset reorganization involving Sinoair

15 Jan 2018• Announced that the

reorganization may involve the issue and listing of A shares of Sinotrans in exchange for shares of Sinoair which will then be merged into Sinotrans

1 Feb 2018• Published the announcement

of the proposed listing of A shares and the merger of Sinoair, in which the key terms of the transaction are disclosed

28 Feb 2018

• Announced that Sinoair is planning and discussing a major proposal, and has applied for the suspension of trading in its shares on the Shanghai Stock Exchange

3 Jan 2018• Announced to be involved

in a major asset reorganzation with Sinotrans and the continued suspension of trading in its shares

16 Jan 2018• Announced the

reorganziation may involve the merger of Sinoair by Sinotrans with issuance and listing of A shares of Sinotrans

2 Feb 2018• Published the

announcement of the proposed merger of Sinoair into Sinotrans with the key terms of the transaction disclosed

1 Mar 2018• Sinoair resumed trading on

the Shanghai Stock Exchange

26 Mar 2018

Sinoair Related Transaction

Sinotrans

Sinoair

25


26

CONSOLIDATION

REFORM

INNOVATION

EMPOWERMENT


TRANS-

FORMATIONQUALITY

27

IR Contact

Investor Relations Department

Tel : +8610 5229 6667Email : [email protected] : www.sinotrans.com